Berkshire disclosed a $10 billion Alphabet stake and about $4.5 billion in Q2 buybacks.
Why it matters: The filing shows Berkshire putting more cash to work in stocks and repurchases rather than letting its cash pile sit idle. Investors will use the move to gauge how aggressively the company may deploy capital from here.
- Berkshire said Aug. 8 it held $365.5 billion in cash at June 30, down from nearly $400 billion at March 31.
- The company disclosed a $10 billion investment in Alphabet during the second quarter.
- Berkshire repurchased about $4.5 billion of its own shares in Q2, after about $234 million in Q1.
- Reuters reported in May that Berkshire's March 31 filing showed a new Alphabet stake.
Berkshire Hathaway said in its Aug. 8 quarterly report that it held $365.5 billion in cash at June 30, down from nearly $400 billion at March 31. The filing also showed a $10 billion investment in Alphabet during the second quarter and about $4.5 billion in share repurchases.
The disclosure gives investors a clearer read on Berkshire's capital allocation in the June quarter. It shows the company committing more of its cash to a large new stock position while also buying back its own shares.
Berkshire had repurchased about $234 million of its own shares in the first quarter, after a nearly two-year pause, according to the company's earlier filings. The company has said it buys back stock when it trades below intrinsic value, according to Reuters.
Reuters reported in May that Berkshire's March 31 filing showed a new Alphabet stake, and that filing also included positions in Delta Air Lines and Macy's. The later quarter report confirmed the Alphabet position and showed the size of the investment through June 30. Reuters
By the numbers
- 365.5 billion - Berkshire's cash pile at June 30
- 10 billion - Alphabet investment disclosed in Q2
- 4.5 billion - Berkshire share repurchases in Q2
Yes, but: The filing does not explain why Berkshire bought Alphabet or whether the position was built gradually across the quarter.
What's next: Investors will watch Berkshire's next quarterly filing for whether the Alphabet stake grows, shrinks or stays unchanged.